{"id":4757,"date":"2014-06-12T13:12:52","date_gmt":"2014-06-12T13:12:52","guid":{"rendered":"\/?p=4757"},"modified":"2014-06-12T13:22:00","modified_gmt":"2014-06-12T13:22:00","slug":"dna-brands-inc-otcmktsdnaxs-ceo-resigns-after-pr-fiasco","status":"publish","type":"post","link":"\/articles\/dna-brands-inc-otcmktsdnaxs-ceo-resigns-after-pr-fiasco\/","title":{"rendered":"DNA Brands, Inc. (OTCMKTS:DNAX)’s CEO Resigns After PR Fiasco"},"content":{"rendered":"

\"6DNAX.png\"As you probably know, DNA Brands, Inc. (OTCMKTS:DNAX<\/a>)’s shareholders have been through quite a lot over the last couple of days. On Monday, the company announced that it has signed a distribution agreement with an entity called Trenton Coca-Cola and in a matter of around four hours, the ticker gained a whopping 525%. <\/p>\n

A 38% correction followed on Tuesday which got some people concerned, but unfortunately, the worst was yet to come. A couple of hours after the closing bell, DNAX<\/a><\/strong> issued another press release and said that there was no deal with Trenton Coca-Cola.<\/p>\n

Investors were understandably outraged and yesterday, the ticker took a dive. More than 184 million shares changed hands while DNAX<\/a><\/strong> burned through 65% of its market cap. Currently, the stock stands at $0.0032 per share which is 78% below the $0.015 peak<\/strong> reached because of the non-existent distribution agreement. <\/p>\n

The company, however, wants to make amends. After yesterday’s closing bell, DNAX<\/a><\/strong> announced that Eric Fowler is stepping down from his position as President and CEO. DNAX<\/a><\/strong> will be headed by its founder, Melvin Leiner until the Board of Directors find a highly qualified person willing to take the helm.<\/p>\n

Mr. Leiner promised that he will do everything he can to stop similar mistakes from happening in the future while Mr. Fowler announced that the whole thing has been caused by a misunderstanding of a phone conversation and said that he’s taking full responsibility for his actions.<\/p>\n

We’re not quite sure if this will change the fact that quite a lot of people lost a huge amount of money over the last couple of days. Still, is there even a glimmer of hope for them?<\/p>\n

Only the future will tell us. Unfortunately, things are not looking particularly good at the moment.<\/p>\n

Many investors predicted that DNAX<\/a><\/strong> was going to be suspended because of the PR farce and a large portion of them suspected that the order would come before the start of yesterday’s session. That didn’t happen, but DNAX<\/a><\/strong> is not out of the woods just yet.<\/p>\n

Posters around the message boards say that they have informed the SEC about the issue which means that an action from the regulatory organs is still not out of the question. If DNAX<\/a><\/strong> does get suspended, people who are still in could lose even more money, but even if trading does resume uninterrupted, there will still be some other things that could cripple the stock.<\/p>\n

The worst of which is the dilution<\/strong>. Here’s a snapshot of the transformations that the O\/S count went through over the last couple of months:<\/p>\n